Letter: Time to reassess energy policies

This fall, the election of a new governor and other state policymakers will hinge on several issues, like what energy and infrastructure policies they'll support to strengthen Michigan's economy. That means looking at abundant and increasing cleaner forms of traditional energy like oil and natural gas and alternative sources like solar and wind.

That's why the Legislature and the utility commission here, like in other states, are examining their energy policies' impact on end-use consumers like families, businesses, manufacturers and farmers.

Take, for example, the changes we've seen in the solar industry. Solar photovoltaic (PV) is one of America's fastest-growing domestic energy resources. Per the U.S. Department of Energy, solar generation grew over 40 percent between 2016 and 2017. Solar was also the largest source of new power generation to come online in the first quarter of 2018, representing 55 percent of all electric capacity generation added, according to a recent report from the Solar Energy Industries Association.

Prices for solar installations have also declined, about 70 percent since 2011. An analysis by the National Renewable Energy Laboratory found that prices for utility-scale PV systems fell an additional 30 percent in early 2017 from the previous year.

Technology and policies made by federal, state and local leaders, like incentives and net energy metering, have played a major role in the increased use of solar generation. These mechanisms have reduced homeowners' out-of-pocket costs for installation and maintenance of PV systems. And in some states, the incentives exceed the cost of the system.

In Michigan, for instance, an average homeowner-owned PV rooftop system reportedly receives $17,993 in taxpayer and net metering incentives, or 91 percent of the system's total cost. In contrast, an average third-party-owned rooftop solar system receives $21,701 in taxpayers and net-metering incentives, equal to 130 percent of the system's cost.

With the state projected to add over 800,000 more residents over the next three decades, plus new businesses with more employment opportunities, Michigan will need to maintain a modern and flexible, affordable electricity mix to ensure it can meet growing demand — which is why it's paramount policymakers reassess policies and incentives that align with ever-changing market conditions.

Chris Ventura

Midwest director

Consumer Energy Alliance

Letters guidelines:Crain's Detroit Business will consider for publication all signed letters to the editor that do not defame individuals or organizations. Letters may be edited for length and clarity. Email: [email protected].